Did you know you may be eligible to claim a variety of deductions on your tax return if you are a real estate agent?
We want to help you get the maximum tax return you are entitled to, so our tax experts put together this simple guide to tax deductions for real estate agents.
Our Real Estate Agents Tax Return and Deduction Checklist
We created our real estate agents deduction checklist to help you know which work-related expenses you can claim in your tax return.
If you are one of the thousands of real estate agents working in Australia, our tax deduction checklist will cover:
- What real estate agents can claim in Australia
- What real estate agents can’t claim in Australia
- Considerations for real estate agents when filling out their tax return
- Tax tips for real estate agents
Can Real Estate Agents Claim Any Deductions?
As a real estate agent in Australia, you are eligible for various deductible expenses. Real estate agents can receive a tax deduction if they spend money on services and goods necessary for earning their income.
To be eligible for a claim, you must:
- Have paid for the services or goods yourself and without reimbursement
- Have proof of the payment
What Real Estate Agents Can and Can’t Claim for Deductions
| Category | CAN Claim | CAN’T Claim |
|---|---|---|
| Vehicle Expenses | Expenses for work-related vehicle use (client meetings, showings), using cents per km or logbook methods. | Mileage driven from home to the workplace. |
| Travel Expenses | Work-related travel (e.g., seminars, overnight stays), including meals and flights. | Relocation costs. |
| Clothing and Laundry Expenses | Uniforms or protective clothing distinct to your employer (with company logo). | Office clothing without a company emblem. Cost of cleaning regular work clothes. |
| Training, Professional Development, and Education Expenses | Fees for work-related courses, seminars, including travel and accommodation. | Self-education or training unrelated to your current job. Costs related to changing careers. |
| Client Gifts and Entertainment | Gifts and entertainment expenses related to earning income, with proof required. | Entertainment costs and social functions (e.g., taking a client to dinner). |
| Communication Expenses | A portion of internet or mobile phone expenses for work-related use. | Personal use of phone/internet. |
| Home Office Expenses | A portion of running costs if working from a dedicated home office, including mortgage interest, insurance, or rent. | Non-dedicated workspaces. |
| Marketing and Advertising Costs | Expenses for property marketing (e.g., promotional materials, online listings). | Unrelated personal advertising. |
| Office Supplies, Software, and Equipment | Expenses for office supplies and work software. | Tools or equipment provided by your employer. |
| Professional Fees and Memberships | Memberships, licence renewals, professional association fees. | Initial certification or licence fees. |
| Tax Agent Fees | Fees for hiring a registered tax agent to prepare and lodge tax returns. | |
| Commissions or Referral Fees | Commissions paid to other agents or referral fees. | |
| Other | Additional expenses like flowers for property staging, union fees, subscriptions to technical publications, marketing tools. | Personal grooming expenses (e.g., cosmetics, haircuts), prescription glasses, driver’s licence fees, childcare, fines, or penalties. |
Tax Deductions for Real Estate Agents: What You CAN Claim
- Vehicle Expenses — If you incur expenses from work-related vehicle use (client meetings, showings, property inspections, etc.), you can claim them using the cents per kilometre method or the logbook method. This does not include travel from your home to the workplace.
- Travel Expenses — Expenses from work-related travel, such as attending an overnight work seminar, can be claimed. Meals during work-related travel can be claimed as well. Flight costs for work-related travel are also deductible.
- Clothing and Laundry Expenses — If you are required to wear a uniform or protective clothing, this can be claimed. The uniform must be distinct to your employer and display the company logo.
- Training, Professional Development, and Education Expenses — Fees for work-related courses, professional development, and seminars are deductible. This includes accommodation and travel costs if you need to attend meetings, training courses, or seminars related to earning your income.
- Client Gifts and Entertainment — Certain costs incurred for client gifts or entertainment are deductible. They must be directly related to earning your income and you’ll need to save proof of the expenses.
- Communication Expenses — If you have internet or mobile phone expenses due to work-related use, you can claim a portion of the costs. A tax accountant can help you determine the eligible percentage you can claim.
- Home Office Expenses — If you work from a home office, you can claim a portion of your running costs. You’ll need to calculate the appropriate percentage you can claim. A portion of your mortgage interest, home insurance, or rent may be deducted if you have a dedicated home office space.
- Marketing and Advertising Costs — Expenses from marketing properties, such as promotional materials, online listings, and print advertisements are deductible.
- Office Supplies, Software, and Equipment — Expenses for office supplies and work software are deductible.
- Professional Fees, Memberships, Licensing Fees, and Subscriptions — Expenses incurred due to memberships to professional real estate associations or renewing your real estate licence are deductible.
- Tax Agent Fees — If you pay a registered tax agent to prepare and lodge your tax return, these fees are deductible.
- Commissions or Fees — Commissions paid to other agents or referral fees paid are deductible.
- Other — Additional expenses real estate agents can claim include flowers or other items used to decorate properties, union fees, subscriptions to technical publications, and marketing tools.
Tax Deductions Real Estate Agents Can’t Claim
Here are tax deductions real estate agents cannot claim:
- Entertainment costs and social functions, such as taking a prospective client to dinner
- Self-education or training expenses that are not directly related to your line of work
- Self-education costs related to transitioning to a different career
- Office clothing that does not have a company emblem
- Any tools or equipment, such as a laptop or camera, provided by your employer
- Cost of meals, beverages, or snacks purchased during your workday
- Personal grooming expenses, such as cosmetics or haircuts
- Childcare
- Fines and penalties
- Prescription glasses or contact lenses
- Relocation costs
- Driver’s licence fees
- Fines or penalties
- Mileage driven from your home to your workplace
- Cost of cleaning clothes you wear to work
- While you can claim the cost of renewing your real estate licence, you cannot claim the initial cost of your certification or licence
We put together this helpful, printable tax deduction checklist for real estate agents so you can easily see what you can and can’t claim: Tax Deduction Checklist for Real Estate Agents.
We also cover a range of industry-specific tax deductions here: Tax Return Checklists – Industry-Specific Guides to Tax.
Things to Consider for Real Estate Agents When Doing Their Tax Return
When lodging your tax return as a real estate agent, remember to include all sources of income you received during the tax year.
This includes:
- Any salary or wages you earned as income
- Any bonuses
- Any commissions earned
To make tax season as easy as possible, stay informed and organised throughout the year. This will make tax season less stressful and ensure you get the maximum return you are entitled to.
Here are the steps to staying organised throughout the year to make your life easier once tax season hits:
- Research what tax deductions real estate agents can and cannot claim in Australia and stay informed on current tax laws
- Keep accurate and detailed records of all of your work-related expenses
- Keep bank statements, credit card statements, receipts, and invoices for any work-related expenses or purchases
- Do not claim work-related expenses or purchases that you were reimbursed for
- Check out the helpful tax tools, such as myDeductions, on the ATO app
- Take pictures of work-related receipts and store them in a folder so they are all in one place when you lodge your return
- Consider lodging your tax return at the end of July to give yourself ample time to complete it before the deadline
You May Also Like: 10 Last Minute Tax Tips to Maximise Your Return
Tax Tips for Real Estate Agents
Here are our top insider tax tips to help streamline your return at tax time.
- Work with a tax professional
- Keep accurate records
- Do not claim for expenses you received reimbursed for
- Correct any mistakes immediately
Tax Tip #1. Work With a Tax Professional
As a real estate agent, it can be confusing to sort through all the expenses you can and can’t claim.
To make sure you lodge a 100% accurate return that maximises your deductions, consult a tax professional. At TaxReturn.com, we make it as easy to take advantage of every deduction you are eligible for.
We can save you time and get you the highest return you are entitled to, all with the peace of mind of knowing your return is 100% accurate.
Tax Tip #2. Keep Accurate Records
It is crucial to keep accurate records and proof of any work-related expenses. Without proof, your tax deductions will not be valid, even if it was an eligible expense.
Maintain accurate and detailed records, including all receipts and invoices for expenses claimed. You can keep the physical copy of receipts and invoices, or keep photo or digital records. We also recommend keeping a logbook if you use the logbook method for car expenses. It can also be helpful to retain bank statements for at least five years.
Tax Tip #3. Do Not Claim for Expenses You Received Reimbursed For
It is important to avoid inflating your deductions. If you try to claim a deduction you were reimbursed for or do not have a receipt for, you are at risk of a variety of penalties and fees from the Australian Taxation Office (ATO).
Always support your deductions with the proper proof, only claim expenses related to earning your income, and do not claim expenses you were reimbursed for.
Tax Tip #4. Correct Any Mistakes Immediately
While it is best to avoid mistakes on your tax return entirely, if you notice a mistake it must be corrected immediately.
If you inflate your tax return, fail to provide proof of work-related expenses, misspell your name, or list your address incorrectly, contact the ATO or your tax accountant right away.
To learn about the most common tax mistakes, see our guide here: Tax Filing Errors to Dodge: Expert Tips for Avoiding Common Mistakes.
Hand the Hard Work Over to Our Expert Tax Accountants
We know tax time can be confusing and stressful but we are here to take over the hard work for you. With our trusted team of expert Australian accountants, you can rest easy knowing we’re getting you the best refund possible and that your tax return is 100% accurate.
Get an instant tax refund and complete your tax return online in just a few easy steps.
By contacting our friendly customer service team. Get in touch by emailing support@taxreturn.com.au, phoning 0499 829 829 (0499 TAX TAX), or filling out our online contact form.
